AI spending remains strong despite Trump’s tariffs, says Goldman Sachs
AI spending is seen as too strategic to cut, even as tariffs raise business costs.
President Donald Trump’s new tariffs may force companies to adjust staffing and marketing budgets, but spending on AI will likely remain protected. That is according to Eric Sheridan, co-business unit leader for technology, media, and telecommunications at Goldman Sachs.
Speaking on the Goldman Sachs Exchange podcast, Sheridan said the latest tariffs are expected to create more volatility in operational costs, particularly affecting head count, marketing, and long-term projects.
However, he predicted that investment in AI would not suffer the same impact. ‘Given the sheer number of players investing both offensively and defensively at AI, I think this spend will get protected for a little longer,’ he explained.
Sheridan cited Meta as a prime example. In its recent first-quarter earnings, Meta raised its annual capital expenditure guidance to between $64 and $72 billion, up from a previous range of $60 to $65 billion.
CEO Mark Zuckerberg reaffirmed that AI remains the company’s top priority, even as Meta cut other expenses such as salaries and marketing.
‘We continue to find ways to find efficiencies inside the organization, but we are not at a point where we want to sacrifice long-duration investments,’ Sheridan noted, summarising Meta’s stance.
The broader business environment is shifting as companies respond to Trump’s ‘Liberation Day’ tariffs, announced on April 2. These include a 10% baseline levy and additional ‘reciprocal tariffs.’
While most reciprocal tariffs are paused for 90 days as negotiations continue, China faces a hefty 145% tariff. United States and Chinese officials are set to meet for trade talks this weekend in Switzerland, potentially shaping the next phase of global trade dynamics.
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